A newly proposed bill in Nigeria mandates that anyone wishing to open or operate a bank account, as well as individuals in banking, insurance, and financial services, must provide a Tax Identification Number (TIN).
This initiative, introduced in the National Assembly, aims to boost tax compliance and improve revenue collection for all levels of government.
Under the proposed legislation, titled “A Bill for an Act to Provide for the Assessment, Collection of, and Accounting for Revenue Accruing to the Federation, Federal, States, and Local Governments,” individuals involved in financial activities are required to be registered for tax purposes.
Additionally, non-resident individuals providing taxable goods or services or earning income in Nigeria will also need to obtain a Tax ID.
However, those who only earn passive income from investments will be exempt from this requirement.
The bill further allows tax authorities to automatically register individuals who fail to apply for a Tax ID and mandates that these individuals receive notifications regarding their registration.
Non-compliance with these tax registration requirements may result in fines, starting at N50,000 for the first month and N25,000 for each additional month of non-compliance.
